The Standard (St. Catharines)

Top court enforces duty to consult with Aboriginal groups

Separate rulings on energy projects

- JESSE SNYDER FINANCIAL POST Jsnyder@Postmedia.Com

OTTAWA — The Supreme Court of Canada ruled Wednesday in favour of a small Inuit community in Nunavut, effectivel­y overturnin­g the National Energy Board’s decision to allow seismic testing in Baffin Bay and signalling a growing willingnes­s by the Crown to enforce the duty to consult with Aboriginal groups.

The court ruled in favour of Clyde River to block the proposal by a Norwegian consortium to conduct seismic airblast testing, a process that allows companies to seek out pockets of oil and gas locked beneath the ocean floor.

In a separate ruling, the Court upheld the NEB’s approval of Enbridge Inc.’s expansion and reversal of its Line 9 pipeline, which was appealed by the Chippewas of the Thames First Nation in southern Ontario.

The Clyde River ruling could signal a critical shift in the duty by oil and gas companies to consult with Aboriginal groups during developmen­t. Analysts said it underscore­s the duty to consult in so-called “expedited” review processes in which the NEB is given the final say on project approvals.

“Everyone sees more consultati­ons coming in these types of situations,” said Dwight Newman, a professor at the University of Saskatchew­an.

The decision comes as several First Nations groups are appealing the approvals of major pipeline expansions in Canada, including Kinder Morgan Canada’s Trans Mountain pipeline that stretches from northern Alberta to a port near Vancouver.

Newman said the two decisions are distinct from major pipeline proposals, because the rulings involve the expedited review process that does not require the same degree of consultati­ons.

But, the Clyde River ruling could nonetheles­s signal a growing willingnes­s to override approval of projects by regulatory bodies if duty to consult is not met. The justices wrote that the Crown “always holds ultimate responsibi­lity for ensuring consultati­on is adequate” as part of the rationale for its decision.

The decision is in stark contrast to the ’Standing Buffalo’ ruling in 2009, in which some First Nations groups appealed the approval of two crude oil pipelines and a third diluent pipeline, a product that is mixed with heavy oil to allow it to flow. The appeal was ultimately denied on the grounds that it was not within the mandate of the NEB to assess whether there was adequate consultati­on around the projects.

In the Clyde River case, the court said its ruling was not due to environmen­tal risk, but because consultati­ons did not properly address Inuit treaty rights that allow locals to hunt large mammals and fish in the region. Residents of Clyde River worried that the loud airgun blasts used in seismic tests could have unknown impacts on population­s of narwhal, beluga, bowhead whale and walrus.

“This could change the migration routes of whales,” former Clyde River mayor Jerry Natanine said this week. He said some residents are concerned the blasts could either physically harm whales and fish, or potentiall­y scare them off to regions beyond the reach of local fishermen.

“That would be devastatin­g,” he said.

Natanine said the consortium consulted with the local Inuit communitie­s, but that it did not provide adequate responses to local concerns. In one instance, the community asked for video monitoring of how fish would react to airgun blasts, but the consortium did not provide it, he said.

The consortium, made up of Norwegian companies TGSNOPEC Geophysica­l Company, Petroleum Geo-Services and Multiklien­t Invest AS, did not respond immediatel­y for comment Wednesday.

Meanwhile, in upholding the approval of Enbridge reversal and expansion of its Line 9B project, the court said the Cal- gary-based company’s consultati­on with local communitie­s was “far more robust” than the Norwegian consortium’s consultati­ons with residents of Baffin Island. The company years ago proposed to reverse and expand the Sarnia-to-Montreal pipeline, increasing capacity to 300,000 barrels per day from 240,000. It was approved by the NEB in March 2014, and went into service December 2015.

The court said Enbridge’s consultati­on process was “manifestly adequate.” The company hosted several oral hearings before work on the pipeline began. Locals were also given adequate time to submit written concerns to the NEB, the ruling said.

Enbridge applied for the reversal in order to transport heavy oil from Western Canada to refineries in Ontario and Quebec.

In a statement Wednesday, the company said it “appreciate­s and respects” the SCC decision.

As for Clyde River, the decision is not expected to have much impact on oil and gas developmen­t in the region. Ottawa imposed a five-year ban on oil and gas exploratio­n in Arctic waters in December 2016, and low oil prices have made fossil fuel developmen­t uneconomic in remote Northern locations.

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